One may argue that businesses exist for the sole purpose of making a profit and thus it is not uncommon for people to hear stories of companies that exploit their workers all in favor of maximizing their profits. So, must companies exploit labor in order to maximize profits?
Exploitation of labor is defined as an act of treating a worker unfairly for their own beneficial purposes. The relationship is based on a fundamental asymmetry in a power relationship between workers and their employers. Exploitation is defined as the forced appropriation of the unpaid labor of workers.
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It is evident that every employer is concerned about the labor wage and the costs that come with be it employee benefits or higher wage rates. It is common of many employers using attractive packages which are essential for inducing people to apply for jobs and making them work hard, although also subtracting the employer’s revenue which reduces the company’s profits.
The above statement elicits different opinions among many and thus some may propose with the idea whereas the rest will be against it. All this depends on the moral obligation of the manager and the company since the whole idea lies within their hands. It is evident that the exploitation of workers can harm the company’s profit targets. Whenever workers do not have the drive and the motivation needed to continuously work harder, then it really affects the company’s morale harming most of the incentives that they receive from the organization. Many of the workers will thus come to work not highly motivated eel as though they are being exploited for the mere profit of the company they work for, this can ruin motivation, pride in the company that they work for, destroy morale and harm incentive to a great degree. The overall result will see many unfinished and poor-quality goods produced by the organization thus resulting in poorer services which will damage the business limiting the amount of profit that it receives monthly or annually.
It is unclear whether the decision lies with the company or management since it is up to them to decide whether to whether it is alright exploiting labor for profit among workers. Many people argue that profit is not a measure of success and thus using it to decide your achievements is wrong. They believe that many companies display their profits as a sign of showing the number of workers they have exploited. A worker’s minimum wage is enough for many workers to survive but also at the same time become miserable and even hungry. The wage labor today is dependent on the minimum wage a worker receives. It is evident that profit is the main peril that has contributed to the uprise of the exploitation of labor among workers leaving them angry and miserable without any motivation in them.
One should understand that profit is not a measure of success and this is the sole reason as to why many companies in the states are still weak. It is because they never focused on spending much of their investments on people and their future projects rather decided to maximize most of their profits. It should be evident that when labor costs increase, an employer’s is forced to doing nothing thus waiting for any immediate options that may present itself, however, all that is left in the meantime is absorbing the costs incurred or try reducing the number of workers that they have employed. Reducing the number of capital investments that one has invested in takes time and thus capital investments such as buildings or machinery require an efficient operation, however, changing a worker’s hours is the easiest and the quickest decision one can take. It should be noted that many of the employers are forced into making decisions that consist of employment and wages.
An increase in the hourly wage rate also increases fixed costs thus reduces the number of hours required for one to work and the employment rate. Therefore, imposing a per-worker tax will make employers higher few staff and also extend the hours to some of the existing workers.
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